Delayed payments are a harmful practice in Canada’s construction industry. They are a significant problem for small businesses, their employees and families, and taxpayers. This issue has led to layoffs, bankruptcies, higher construction costs and fewer competitive bids in the construction sector, which has driven up prices for consumers, governments, and taxpayers.
An open letter to Canadian Construction Industry.
March 24, 2017 – Bill S-224, The Canada Prompt Payment Act, was introduced in the Senate over 11 months ago. The Canadian Construction Association (CCA) has taken no public position on the legislation. It is clear to Canada’s trade contractors and suppliers that, while a piece of legislation has been tabled that would solve the issue of payment delays with the federal government, it is irresponsible for CCA to stay on the sidelines. Continuing to make progress toward changes that have no force and effect is the definition of futility…. Read more…
Senate Review – Prompt Payment Legislation, Bill S-224 has passed 1st & 2nd reading in the Senate and is now before the Senate Committee on Banking, Trade and Commerce. Hearings were held on February 2nd, 8th & 9th, 2017 featuring MCA Canada, Senator Plett and numerous industry stakeholders and representatives of the federal government. The following are links to the Senate Committee hearings:
February 2- Click Here (Senator Plett, CIPH & CBTU)
February 8- Click Here (MCAC President Del Pawliuk, NTCCC, & CMMTQ)
February 9- Click Here (Parliamentary Secretary Steven MacKinnon)
MCA Canada is calling on all government parties to commit to supporting Bill S – 244, otherwise known as the Prompt Payment Bill which was introduced into the Senate on April 13, 2016.
The Bill requires all federal contracts for construction projects to include a prompt payment clause. This would require federal government owners and contractors to make payments on-time for work that has been completed and that is not in dispute. Without costing the government anything extra, this would be a positive stimulus to the construction industry and would have the positive, long-term effect of inviting more competitive bids and more affordable projects overall.
Other countries like the United Kingdom, Ireland, Australia, New Zealand and the United States (including 49 of 50 states) have eliminated delay issues by implementing prompt payment legislation. Canada has not!
MCA Canada strongly supports the need to eliminate payment delays for completed work and is diligently working with all levels of government to initiate protocols to ensure contractors get paid for the work the have successfully completed.